1) Thought it is the same developer. Didn’t think that something of the same developer that works right in one environment works wrong in the other.
2) Klick the link, size the window – if you do not see, what goes wrong, I can’t help. It doesn’t “work fine”.
3) Of course I selected “Use Smart menus”. There is a little cross in the Box and when I change your css the changes are visible in the menu.